Case: Imagine that youve just inherited $1 million and you are trying to build a long-term retirement portfolio with this $1 million.

Outline: 1. Introduction a. Background: Receiving a $1 million inheritance b. Objective: Building a long-term retirement portfolio

2. Assumptions and Considerations a. Identifying relevant factors and assumptions for portfolio construction b. Considering factors such as risk tolerance, time horizon, and financial goals

3. Investment Objective a. Defining the investment objective for the retirement portfolio b. Outlining the desired outcomes and goals for the portfolio

4. Asset Allocation at the Asset Class Level a. Determining the allocation of the $1 million across different asset classes b. Discussing the percentage allocation and providing rationale for each asset class

5. Implementation Steps a. Exploring brokerage options for executing investment transactions b. Evaluating potential managers or investment advisors for assistance, if needed

6. Benchmarking the Portfolio a. Selecting an appropriate benchmark to assess the performance of the portfolio. b. Explaining the importance of benchmarking and tracking progress over time

7. Performance Evaluation Method a. Describing the method for evaluating the performance of the retirement portfolio b. Discussing relevant metrics, such as return on investment and risk-adjusted measures.

8. Monitoring System a. Establishing a monitoring system to track the performance of the portfolio. b. Outlining the frequency and methods of portfolio review and adjustments

9. Pros and Cons a. Analyzing the advantages and disadvantages of the chosen investment approach b. Discussing potential risks and challenges that may arise in managing the portfolio.